Ligand inks $70M deal for Pharmacopeia

San Diego-based Ligand Pharmaceuticals says it will pay $70 million to acquire Pharmacopeia. The acquisition is a stock-for-stock deal. In addition, Pharmacopeia stockholders will be entitled to a Contingent Value Right that entitles holders under certain circumstances to a cash payment of an aggregate of $15 million.

In the deal, Ligand will issue about 17.5 million shares, 0.58 shares for each outstanding share of Pharmacopeia. The deal provides Pharmacopeia shareholders with a 52 percent premium. Current Ligand shareholders will own 84 percent of the combined company.

"We are very excited about combining Pharmacopeia with Ligand," said John L. Higgins, the CEO of Ligand. "...This is a unique opportunity for Ligand and Pharmacopeia shareholders. Both companies have similar growth strategies, and our respective drug discovery platforms are a great marriage of biology and chemistry resources. The acquisition of Pharmacopeia will complement and accelerate our product development programs, strengthen our research capability and increase our potential royalty streams."

- read Ligand's release
- check out the AP report

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